Monopoly and its Effect on Society

Details: There are many different types of monopolies which exist within the market. you are going to talk about the different kind of monopolies, their place in the market, and their effect on society. please discuss the following:

- Define a monopoly.
- Find two examples of monopolies and they cannot be the same type of monopoly (no choosing two government monopolies for example).
- Briefly describe what makes your examples a monopoly.
- How did they become a monopoly?
- What effect does that monopoly have on the market?
- What effect does that monopoly have on society, if any?

Solution Preview

Hello Student,

The first thing that you are required to do in this assignment is define a monopoly. By definition "a monopoly, as many people know, is a market condition in which only one vendor (usually a large corporation) is in play. There may be other somewhat similar businesses, but a monopoly exists when only one business or individual can provide a product or service." Among some of the key characteristics of a monopoly are:

(1) There is only a single firm selling all output (good or service) in a market.
(2) There is a unique product.
(3) There are restrictions on entry into and exit out of the industry.
(4) Under a monopoly, more often than not specialized information about production techniques are unavailable to other potential producers.

Before you continue looking on the questions, you may also want to note the types of monopoly and what are some of the factors that may be used to differentiate between monopolies. Note the excerpt below which provides information on the various types of monopolies; that is, natural monopolies geographic monopolies, technological monopolies and government monopolies:

"A natural monopoly occurs when the type of industry makes it financially impractical, if not impossible, for multiple companies to engage in the business. For example, if you had multiple companies attempting to offer sewage services, that would require multiply sewer lines running to homes which is ...

Solution Summary

This solution provides you with information related to, monopolies and their characteristics; types of monopolies - i.e. natural monopolies, geographical monopolies and technological monopolies; and the effect a selected monopoly (Amtrak, in this solution) can have on the market and/or society. This solution is approximately 900 words.